Wednesday, February 1, 2017

NBTY's $4 Billion Supplement for Carlyle Group

The Carlyle Group is ready to exit vitamin and supplement maker NBTY after six years of ownership. Reutersreported Carlyle could make $4 billion from Nature's Bounty, $1.2 billion from dividends and $2.8 billion in profits from the sale of the company.

Reuters referred to deal as an LBO in the title of the article. Private equity replaced LBO after Junk Bond King Michael Milken went to jail. Apparently both the man and his greedy methods are rehabbed and proud to be spoken as our society walks back in time. Oddly the 1989 NYT piece quotes America's newest President:

Nevertheless, many Wall Street professionals criticized the deal Drexel
had with Mr. Milken. Once his salary began to exceed the budgets of many
small countries, the firm should have altered the terms of the deal,
they said. Executives have also begun to voice concern about what the payments say
about the firm's management. ''You can be happy on a lot less money,''
said Donald J. Trump, the New York developer, whose net worth is
estimated at $1 billion. ''I'm amazed that the firm would allow someone
to benefit that greatly.''

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